What applied to our parents’ financial position isn’t necessarily what applies today. Staying at the same job for the rest of your life? Not likely. Buying a home? Maybe later. Investing as a hobby when you’re 25? Tell me more.

“There is a huge gap between the advice financial planners are trained to provide and the advice millennials need,” says Alan Moore , co-founder of the XY Planning Network , which is focused on helping younger people figure out their finances. “Keep in mind that there are more certified financial planners over 70 than under 30.”

The education to become a financial planner focuses on retirement planning, tax strategies for high-income earners, and complex estate-planning topics only applicable to people with more than $5 million, he says.

While a recent study from the Transamerica Center for Retirement Studies shows that 67 percent of twenty-somethings are already saving for retirement, many are less focused on 401(k)s and IRAs and more concerned with creating new sources of income.

“I don’t talk to people in their 30s about retirement,” Moore, a Millennial himself at 27, says. Instead, he focuses on independence. “I talk about creating passive-income streams, living a great life today while saving for the future, getting into a career that you love.”

He adds, “I personally make money in about seven different ways, any one of which could have been a full-time job 20 years ago.”

In addition to establishing multiple income streams, Moore recommends paying attention to your credit, and establishing credit history as soon as possible—as long as you can trust yourself.

“The first thing I always remind young people is that if there is a risk they might miss a payment or make late payments, don’t get a credit card,” he says. “If they know they will make payments on time, and preferably pay off the balance each month in full, then signing up for a no-fee credit card might be a good place to start.”

Sophia Bera, a financial planner in her 30s who owns her own business, Gen Y Planning , also wants her clients to know that when it comes to personal finances, there’s more to it than “get a secure job, buy a house, save for retirement.”

“I spend a lot of time trying to talk Millennials out of buying homes,” she says. “There’s a lot of pressure from family to buy a house as soon as they’re making good money, but oftentimes that isn’t a good fit if they know they’re going to move in a few years or they have other financial priorities. I don’t believe renting is ‘throwing away money every month.’”

Instead, she says focusing on building net worth is just as fulfilling as building equity.

Putting a financial plan into action

Stephanie Hardiman Simon, 27, and a social media and communications manager for a government watchdog organization, shares Moore’s desire for financial independence.

“My husband and I are aiming to retire by 40 , with the assumption that we can work sporadically afterward if we wish and pursue other projects we may be passionate about without worrying about the bottom line,” she says.

How is she doing that? By living smart for her lifestyle. She lives close to work to save on a commute, is cutting her student loan debt as quickly as possible, tries to avoid carrying a balance on her credit cards, and contributes to her 401(k) as much as she can to reduce taxable income.

“My family often encourages us to buy a new car or make other splurges because we can afford it, but we’d rather save the money and drive around in a car with more than 240,000 miles on it,” she says.

While there are clearly different financial behaviors with the Millennial generation, some of the more “tried and true” behaviors remain. Bethany Remely, a 30-year-old who works in client support at an advisory-based firm, has incorporated some of the following practices into her own life.

“Start a retirement fund. Today. Pay yourself first and put money into savings too,” Remely says. She adds that automatic withdrawals are “gold” for accomplishing this.

As a Millennial myself, I definitely believe in the practice of: Save more, earn more. The automatic, pay-yourself-first savings philosophy is so simple, but it’s also staggeringly effective. Setting up that automatic transfer one time has put so much money into my savings account without my noticing that I’m actually surprised every time I see how much is in there.

It all adds up over time—something Millennials definitely have.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Media, and a regular contributor to the Equifax Finance Blog. Prior to joining TGM, Michelle worked for the Chicago Tribune as a daily news reporter and community manager. She now specializes in real estate industry news, consumer financial reporting, and home design and decor.

Some insurance carriers are refusing to insure homeowners who own certain breeds of dogs that have been deemed dangerous, such as the Pit bull dog, Rottweilers, and Chow Chows. Others may take the dogs on a case-by-case basis, or they may provide insurance but exclude coverage for bites or attacks. Some homeowners are even being dropped from their insurance companies completely for having these dogs.

According to the Insurance Information Institute and State Farm, in 2014, 16,550 dog bite-related claims cost U.S. insurance companies more than $530 million. With the cost of claims rising nearly 67 percent over the past 10 years, some insurance carriers are concerned that certain breeds are simply too risky to insure.

“Getting rejected is so common now that people are getting frustrated,” says Dori Einhorn, owner of Einhorn Insurance Agency, which offers dog liability coverage when a dog has been deemed dangerous or rejected from homeowner’s insurance due to its breed.

She notes that she gets hundreds of e-mails every day from people looking for some way to insure their home without giving up their beloved pets.

“I don’t want to discourage people from owning these wonderful dogs,” Einhorn says. “I have a pit bull myself, and if someone had told me, ‘It’s going to be really hard to have insurance,’ I don’t know if I would have adopted her.”

It’s far from impossible to get coverage, Einhorn says, but these dog owners should be prepared to jump through a few extra hoops. Coverage availability and the average cost of homeowner’s insurance coverage can both vary from state to state—and even city to city.

“Sometimes, you kind of have to know where to go,” Einhorn says.

Here are a few helpful hints for shopping for homeowner’s insurance when you may have a dog deemed a dangerous breed.

Start with friends, family, and fellow dog owners

Ask your dog-owning friends and family members what insurance companies they use. You can also reach out to fellow dog owners through dog rescue, advocacy, and meet-up groups, as well as breed clubs.

The American Kennel Club (AKC) recommends calling your state’s insurance commissioner, obtaining a list of all insurance companies doing business in the state, and working your way down the list until you find one that suits your needs.

Find out up front if an insurance company blacklists any breeds

Taking this step is largely a time-saving measure for you and the insurance company. If your dog breed is going to make it impossible to get homeowner’s insurance from a specific company, there’s no point in proceeding. Lying about what kind of dog you have constitutes as insurance fraud.

Not all insurance companies have blacklisted breeds. Some insurance companies aren’t concerned with a breed and instead focus on whether the particular dog has a history of biting or was trained as a security dog, says Heather Paul, a spokeswoman for State Farm, which does not have a breed blacklist.

Consider obedience training or the Canine Good Citizen (CGC) program

Even if your dog is friendly and well trained, it might be worthwhile to sign up with an obedience school that can certify its training. You can also enroll your dog in the AKC’s 10-step CGC Program, which focuses on basic dog manners and also stresses responsible pet ownership. These types of courses can also help you, as the owner, recognize scenarios that might trigger unwanted behavior.

“We can’t blame dogs for communicating and acting like dogs,” Paul says. “We as human owners have to be responsible and recognize when a dog is afraid or uncomfortable. We have to change our interactions with dogs to prevent dog bite incidents.”

Just make sure you ask the insurance company in which you’re interested if this would make a difference, Einhorn says. Sometimes training does help you get coverage for your dog, but sometimes it doesn’t.

Consider dog liability insurance

Some companies, like Einhorn’s, also sell specific dog liability policies that can cover your dog if it’s a dangerous breed or if it has already been deemed dangerous due to an incident. The cost of these policies ranges widely, so you may have to pay an extra fee beyond your homeowner’s insurance. Still, these policies can offer you options for insurance, especially if your dog already has a bite history.

Your four-legged friend may be a part of your family, but to your insurance company Fido could be a risk. If you haven’t yet gotten a dog, be sure to ask your insurer beforehand if there are breeds it might not cover. And if you’re shopping for insurance with a pet, remember that it might take a little more digging to find the right insurance policy

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Media. Michelle previously worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues, and crime.

]]>http://blog.equifax.com/insurance/could-your-dog-keep-you-from-getting-homeowners-insurance/feed/0When Should I See a Financial Planner?http://blog.equifax.com/retirement/when-should-i-see-a-financial-planner/
http://blog.equifax.com/retirement/when-should-i-see-a-financial-planner/#commentsThu, 23 Oct 2014 12:26:24 +0000http://blog.equifax.com/?p=11209Everyone can benefit from sound financial advice, but not everyone is ready to see a financial planner. How do you know you’re ready to enlist the help of a professional? Here are five things to consider.
]]>How do you know if you’re ready for a financial planner?

After all, it’s sort of a strange proposition: You’re spending money on someone who will tell you how to spend your money. But that’s exactly why millions of people see financial planners in the first place.

“Typically, people who come to me are already asking really good financial questions, but aren’t really sure who to ask them to,” says Sophia Bera, who runs Minnesota-based Gen Y Planning. “They’re usually reading personal finance blogs and can say to themselves, ‘Ok, I’m contributing to my 401(k), and we have some savings, and we paid off some debt, but now what?’”
1. Assess your situation.

You may have the first threads of a financial plan but need help weaving them together in a way that keeps you on track toward your financial goals.

“You should start when you have that nagging feeling that you could be doing better with your money,” says Stephanie Genkin, a financial planner with TA Planners in New York City. “Or you are lost and confused about what to do to get started.”

Perhaps you’re having trouble balancing your different needs and goals, such as saving for retirement while saving for a home and also paying down student loan debt. Or, you have some extra cash and aren’t sure what to do with it, knowing that it’s doing nothing sitting in a savings account.

“Most people aren’t good at multi-tasking, and it can be even more confusing when you don’t really understand risk and reward or asset allocation,” Genkin says.

2. Dig into your finances.

While anyone can benefit from sound financial advice, not everyone is financially ready to see a planner. You should be able to afford the financial planner you choose on your income and have some money saved, Bera says.

Planners accept a wide range of clients. You don’t need a six-figure income and as much in assets, but if you’re living paycheck to paycheck, a financial planner may not be able to help you until you have the cash flow.

3. Know what kind of financial planner you want to see.

Not all financial planners are created equal. Fee-only planners charge for advice and do not earn a commission for selling products such as life insurance or investment funds. Fee-based planners, on the other hand, charge a fee for advice and also earn commission on some products. Commission-based planners and brokers earn money from selling products.

As you search for a financial planner, look for an advisor that is held to a fiduciary standard, which is a rule that requires planners to put their clients’ interests above their own.
4. Find out the costs and what they mean.

Traditionally, planners charge a percentage of the total assets they manage. So if you have $50,000 you want a planner to manage, you may be charged 1 percent ($500) annually.

However, many planners are moving away from that model and will instead charge a flat fee for a plan. Typically these fees run from $1,000 to $5,000. They may also charge a monthly fee afterward to manage your portfolio.

Other planners may charge hourly. The fees range from $75 an hour to upwards of $300 an hour. These advice-only sessions allow you to ask financial questions and receive advice without delving deeply into a comprehensive plan.

If these costs leave you wringing your hands, remember that you can ask the planner how his or her services will save you money. Financial planners and advisors offer investment vehicles that could earn you enough money throughout the year to offset the costs.
5. Calm your nerves and dive in.

Even armed with this basic knowledge, you may still find yourself nervous about reaching out to potential planners.

“The sooner the better for creating a financial plan,” says Nick Barringer, a financial planner with Alpha Financial Advisors in Charlotte, N.C. “Everyone has to start somewhere, and pushing it off to another year may end up meaning having to work longer or falling short of goals.”

You can get started online by doing a search for financial planners in your area. Try the National Association of Personal Financial Advisors (NAPFA) to find fee-only planners near you or the XY Planning Network for planners that specialize in younger clients who want to get started before they’re staring at retirement.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Media. Prior to joining TGM, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues, and crime. She now specializes in real estate industry news, consumer financial reporting, and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/retirement/when-should-i-see-a-financial-planner/feed/1Four Tips for Young Investorshttp://blog.equifax.com/retirement/four-tips-for-young-investors/
http://blog.equifax.com/retirement/four-tips-for-young-investors/#commentsWed, 16 Jul 2014 12:39:43 +0000http://blog.equifax.com/?p=10485Investing may seem like it’s just for the super-rich, but you don’t need a million dollars to start.

In fact, you can start investing with a measly $1,000.

If you have a job that offers a retirement savings plan, you’ve probably already started making some investments. The next step—investing on your own—really isn’t that scary, especially when you consider the returns you may be sacrificing.

“When interest rates were higher, by putting your money in a CD you weren’t sacrificing so much return—right now you are,” says Kathy Kristof, author of “Investing 101” and personal finance and investment writer for Kiplinger’s Personal Finance, CBS MoneyWatch, and Financial Planning.

For example, with an initial investment of just $1,000, monthly contributions of $500, and an average annual rate of return of 9 percent—about average for beginner investments, Kristof says—you will have almost $100,000 in 10 years, $340,000 in 20 years, and just shy of a million dollars in 30 years. The best part is that by the end of the 30 years, less than a quarter of that money will be from your own contributions. Much of the rest will come from the magic of compound interest.

“Compounding your interest over a longer time frame can supercharge your nest egg, so put your money to work as soon as possible,” says Jeff Reeves, editor of InvestorPlace.com and author of “The Frugal Investor’s Guide to Finding Great Stocks.”

Check your financial picture first

Before you take the plunge, Reeves recommends taking stock of your personal finances and budget.

“Do you have a decent rainy-day fund saved up in case of emergency? Have you paid off any high-interest debts, like that 14.9 percent APR credit card you ran up bar tabs on? If you don’t have a strong foundation, don’t jump the gun—worry about the basics first,” he says.

If you feel you can part with a few grand now and a few hundred every month, you’re in good shape to hit the investment road.

Invest passively

Many people pick out a few stocks and cross their fingers, but that’s the exact opposite route you want to take when you’re new to investing. Stick with passive, diverse investments that have a medium or low level of risk and that require little of your attention.

Kristof recommends mutual funds, dubbing them the “no-thought-required, easiest route.” Mutual funds are a diversified collection of stocks and bonds that are professionally managed. She also recommends investing automatically every paycheck, month, or quarter.

“You have better things to remember than investing, like your friends’ birthdays and what you want to do on Friday night,” she says. “For the investing side, do something that is incredibly simple that you set up once and forget about.”

While there are plenty of different kinds of mutual funds, Reeves recommends index funds, which replicate the performance of a board market, such as the S&P 500 or Dow Jones Industrial Average. These funds represent a broad and diversified investment with minimal fees, as you’re getting a little bit of many different companies.

“Why pick individual stocks and worry about the high trading cost and tax burden—in addition to the risk of picking the wrong stocks—when you can buy the entire stock market this way?” Reeves says.

Look for low fees

When you start investing at a young age, you want to look for investments with low fees.

“Those low fees are pivotal,” Kristof says. “You’re going to be paying them for such a long time that a half a percentage point is going to mean tens of thousands of dollars to you over time.”

Look for something with less than half of a percentage point if you can. Compare fees on different accounts and determine how those fees will add up over a decade or more.

Be patient

“For somebody who’s young and starting out, giving your investments time is the most compellingly wise thing that you can do,” Kristof says. “When you’re starting to invest at 25, you can invest little of your own money and still end up with an absolute fortune in the end.”

Unlike a savings account or CD, you don’t want to be pulling this money out in five years. Getting that first $100,000 is hardest, but after that the money piles on much more quickly, Kristof says.

Beyond letting your interest compound, you can also ride out market dips with more time to ensure you’re not losing money.

“The best investing strategies are not ‘get rich quick’ scams,” Reeves says. “A disciplined strategy of putting away a little bit each month and investing it with an eye on the long term is quite powerful if you have the patience to stick with it.”

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Media. Prior to joining TGM, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues, and crime. She now specializes in real estate industry news, consumer financial reporting, and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/retirement/four-tips-for-young-investors/feed/0Hiring Outside Professionals to Help Grow Your Businesshttp://blog.equifax.com/small-business/hiring-outside-professionals-to-help-grow-your-business/
http://blog.equifax.com/small-business/hiring-outside-professionals-to-help-grow-your-business/#commentsTue, 24 Dec 2013 12:36:53 +0000http://blog.equifax.com/?p=8323As a business owner, you may at some point consider hiring outside professionals to help grow your small business. Whether that’s early on or further down the line, you will better understand the costs and benefits of bringing these professionals on board when you can anticipate who they are and when you might need them.

Here are some outside professionals you may want or need to hire as your business grows:

1. CPA. Some business owners may need to hire a certified professional accountant (CPA) from the start, while others can wait a while before taking this step. You can request that a CPA help you manage your books, figure out your taxes and, in some cases, assist you with payroll. Your CPA should know how to advise you to minimize your federal and state business tax payments as well.

If you are a solo practitioner, you typically won’t need the services of a CPA. But you may think about hiring a CPA if you incorporate your business or hire employees because, as your company grows, your paperwork and finances will get more complicated. While hiring a CPA will add to your costs, you may be able to offset some of those costs through tax savings and bookkeeping efficiencies.

2. Payroll company. Payroll can get complicated, especially when you have a mix of full-time and part-time employees, salaried workers, hourly staff, and independent contractors. A payroll company may be able to streamline the process for you.

Some payroll services may only handle paying employees, while others may have the capability to manage retirement plans. As you grow, you’ll likely want the flexibility an outside payroll company can provide.

3. Lawyer. Whether you hire a lawyer right away or choose to wait until your business has grown, there’s a good chance you’re going to need one at some point. A lawyer can help you with all your business filings and contractual issues, particularly if you are establishing yourself in an industry rife with government codes and regulations.

4. Insurance professional. An insurance agent can help you find the coverage that is right for your business and explain what your options and insurance requirements are based on your circumstances and the location of your business.

As you hire employees, you may at some point want to offer health insurance. A health insurance pro can guide you through the process.

5. Media professional. As the news landscape continues to change, figuring out how to get the word out about your business can seem daunting. If this is how you feel, it may be time to consider hiring a small PR or marketing firm as a consultant. Many former journalists and PR professionals have launched their own small PR or media businesses and are ready to help small businesses establish and execute media and marketing plans. You may eventually want to hire your own internal media professional, although that may not make financial sense until your business is more substantial.

Many media companies have Web professionals that can help you create an online presence. If they don’t, you may want to consider hiring a Web design service or Web consultant to work with you and design your site to look professional and attract new business.

6. Business consultant. There’s a lot you can do yourself, but sometimes you need someone with experience, savvy, and drive to grow your business—or take it in a new direction. Typically, business owners hire this type of consultant after a company is established, when business seems stagnant or operations are no longer efficient.

A consultant can look at the whole company, streamline operations, and determine the kind of customers or clients you should be going after so your business can grow.

No matter what your industry, bringing in outside professionals can help your bottom line, take mundane or niche tasks off your to-do list, and allow you to focus your efforts on parts of the business that are more important to you. That’s a positive step for any small business owner.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink, Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues, and crime. She now specializes in real estate industry news, consumer financial reporting, and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/small-business/hiring-outside-professionals-to-help-grow-your-business/feed/0Tax Tips: Hidden Taxes That Can Bust Your Budgethttp://blog.equifax.com/tax/tax-tips-hidden-taxes-that-can-bust-your-budget/
http://blog.equifax.com/tax/tax-tips-hidden-taxes-that-can-bust-your-budget/#commentsMon, 02 Dec 2013 12:48:53 +0000http://blog.equifax.com/?p=8101Sticking to a budget is hard enough without sneaky hidden charges cropping up on your bills. Watch your bank statements and read your receipts carefully to ensure you’re not paying any of these common hidden taxes.
]]>Paying taxes is a part of life, but taxes can be easy to budget for when you know about them well in advance. Unfortunately, you may be on the hook for taxes you don’t regularly take into account—and these so-called “hidden taxes” can quickly bust your budget.

“Of course, [the taxes you pay] really depend on where you’re located in the country because some jurisdictions have a tax on certain things and others don’t,” says Melissa Lebont, tax director with the American Institute of Certified Public Accountants, the world’s largest association representing the accounting profession.

Taxes vary based on state, but they can even be different from county to county, Lebont says. The additional taxes a person pays can be as much as half, or in some cases more than half, of the overall amount he or she pays.

So, why are taxes hidden? According to the AICPA’s 360 Degrees of Financial Literacy website, “Hidden taxes largely go unnoticed. The result may be that this can make it difficult for us to choose wisely the goods and services that we purchase or to have a true accounting of our total tax burdens.”

Here are some hidden taxes you may be paying:

Cell phone taxes. The charges on cell phone bills are usually separated out. In addition to the actual service charge and any activation fees, you’re likely also paying state and federal cell phone taxes, Lebont says.

Gasoline taxes. Every time you go to the pump, you’re paying taxes for gas, Lebont says. As with cell phone taxes, gas is often taxed by both state governments and the federal government.

Hotel or accommodations taxes. If you travel, you’re likely paying extra taxes for your hotel, bed and breakfast, or other accommodation. This can be a hefty tax, paid to federal, state, and local governments.

Utility taxes. Taxes are usually assessed for cable, landline phones, electricity, and natural gas. In general, utilities have associated taxes, according to Lebont.

Cigarette and alcohol taxes. The taxes on items like these are often called “sin taxes,” and they can vary greatly from state to state.

Use tax. People are usually aware that they’re paying a sales tax, Lebont says, but they may be unaware of the use tax.

If you buy something online, in another state, or from a seller not authorized to collect tax (such as from an individual on an online marketplace), the seller may not charge a sales tax. You may, however, be required to pay a tax after the fact to your state. This tax is typically paid with your state income tax return.

Other taxes through your paycheck. Although you probably know a percentage of your pay goes to income tax, you should also pay attention to the other taxes that come out of your paycheck, Lebont advises. These include Social Security taxes and Medicare taxes.

In most states and some cities (like New York, for example), an additional tax can be levied on income as well, she says.

The AICPA offers a tax estimate calculator that includes hidden taxes. For free, members of the public can “get a clearer view of the taxes they pay,” Lebont says.

To use the calculator, go to www.totaltaxinsights.org and select your state, then answer a few questions about your exact location, income, bills, and spending habits.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink, Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues, and crime. She now specializes in real estate industry news, consumer financial reporting, and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/tax/tax-tips-hidden-taxes-that-can-bust-your-budget/feed/4Three Things You Can Do to Increase Customer Loyaltyhttp://blog.equifax.com/small-business/three-things-you-can-do-to-increase-customer-loyalty/
http://blog.equifax.com/small-business/three-things-you-can-do-to-increase-customer-loyalty/#commentsMon, 24 Jun 2013 11:58:39 +0000http://blog.equifax.com/?p=6083Starting a small business can be difficult—it takes courage, determination, and a substantial amount of cash. But the labor doesn’t end when you open your doors for the first time; sustaining your company takes hard work.

Customers are the key ingredient to a successful business, and devoted, repeat customers—those who would choose you over your competitors any day—are the best kind. Jeanne Bliss, business consultant and author of Chief Customer Officer: Getting Past Lip Service to Passionate Action, shares her tips on building and sustaining a loyal customer base.

1. Have a clear vision

If you don’t know what you want to be to your customers, you won’t know how to best serve them. Take the time to really think about what it is you’re doing: Are you serving pizza or are you offering customers comfort food that brings back happy memories? Give meaning to the seemingly simple things your business does.

“For example,” Bliss says, “one emerging home builder changed his mission from ‘building contractor’ to ‘delivering on the American Dream.’” Much more than a marketing pitch, this mission statement gave his entire team a sense of purpose.

Bliss suggests asking your employees simple questions, like “What’s your job?” and “What’s our collective job?” to get a feel for how they see the company. It’s likely you’ll get very different answers from each person.

“If you haven’t been the beacon for telling [your team] where you’re headed, they’ll chart their own course. They’ll decide on their own where they’re taking your company—and your customers,” says Bliss. Developing a clear sense of vision will help your customers understand how they should be thinking about you and will help your team execute that vision.

2. Know—and show—how to treat your customers

Great customer service goes beyond crafting a policy that outlines how to handle requests and complaints and handing it off to your employees. To build customer loyalty, your customers need to know that you, the business owner, are invested in their experience.

On a regular basis, talk to your frontline staff—those who deal with customers every day—and ask them what the key issues are, Bliss advises. Assign someone to deal with the major issues, then reach out to your customers directly to better understand the problem.

All customers want to feel they are being listened to. “This is simple, it works and it puts your skin in the game. When you let your company and customers know of your direct understanding and involvement in resolving these issues, it will have an impact and it will set a standard and an example [your team] will emulate,” Bliss says.

3. Learn from the data at your disposal

If you aren’t learning from the issues that arise, you can’t effectively help your customers. Bliss advises tracking and trending feedback from patrons and then managing that customer data to get a comprehensive view of their needs. By doing so, you’ll be able to better serve, and market to, your customers.

Tracking customer data is easier, more efficient, and less bothersome to your customers than surveying them directly. Plus, if you’re effectively tracking customer data and feedback, a survey will only validate what you already know. “If your survey is telling you new things you didn’t know,” Bliss says, “you’re just way too distant from your customers—and in a most precarious position in your relationships with them.”

As a small business owner, you are the beacon to which everyone—customers and staff alike—looks for guidance. Show them all that you value your customers’ experiences, and you will build a loyal base for your business. “That is what people are looking for—to see if there’s more behind the customer commitment than lip service,” Bliss explains. “You need to prove that there is.”

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/small-business/three-things-you-can-do-to-increase-customer-loyalty/feed/0First-Time Homebuyers: The Four Mistakes You Need to Avoidhttp://blog.equifax.com/real-estate/first-time-homebuyers-the-four-mistakes-you-need-to-avoid/
http://blog.equifax.com/real-estate/first-time-homebuyers-the-four-mistakes-you-need-to-avoid/#commentsThu, 30 May 2013 11:50:23 +0000http://blog.equifax.com/?p=5819Homes are more affordable than they’ve been in decades, and mortgage interest rates are at historic lows. As a result, many first-time homebuyers feel that this is the perfect time to jump into the real estate market.

Buying a home is exciting, but it can also come with unforeseen economic obstacles. If you are a first-time homebuyer, you should be cautious to avoid financial surprises or errors when buying a home.

What follows are examples of four common mistakes that homebuyers make—and tips for how to avoid them.

1. Buyers don’t know their credit score. Knowing and understanding your credit score are important first steps to buying a home, says Walter Molony, an economic affairs media manager with the National Association of Realtors (NAR).

“In all probability, you’re going to need a mortgage,” Molony says, “And if you can’t qualify for a mortgage, you’re just going to be wasting your time.”

Because lax lending standards over a period of time caused the boom—and recent bust—in the housing market, lending standards now are much more restrictive, Molony says.

Good credit is one of the first things lenders will look for in a potential homebuyer, so people should know whether they would be eligible for a mortgage. Common-sense actions like paying bills on time and not taking on multiple new lines of credit at one time could help potential buyers look better to lenders, Molony says.

2. Buyers don’t understand the pre-qualification process. In addition to understanding their credit scores, prospective buyers should go through a pre-qualification process with possible lenders to get a better idea of what they can afford.

“The fact is, buyers are usually very well positioned in terms of knowing what they can afford…without going through the pre-qualification process,” Molony notes. “But being pre-qualified for a mortgage gets you a leg up if you’re competing [for a home] with another bidder.”

3. Buyers are overwhelmed by prices. Every first-time homebuyer—or seasoned buyer, for that matter—should research average home values and real estate prices in the areas in which they’re thinking of buying. Numerous commercial websites show the prices at which homes in various areas sold, as well as listing prices for comparable homes in those areas.

For most buyers now—nine out of 10, according to data from the NAR—heavy research will be done via Internet before they take the next big step and contact a real estate agent.

“There are hundreds of thousands of real estate websites out there, so it can be a little like getting a drink out of a fire hydrant,” Molony says. “People want an agent to put that in context for them.”

4. Buyers don’t have the right team in place. When choosing an agent, home inspector, or lawyer to help with the purchase of a home, buyers need to know with whom they’re dealing. All real estate agents should be licensed through the state. Some agents are Realtors, meaning they follow a certain code of ethics set out by the NAR. Some agents represent the seller’s interest, while others represent the interests of the buyer, and still others represent the interests of both.

Prospective buyers should choose agents and other real estate professionals based on trustworthiness, knowledge in the market, and expertise, Molony advises. People often learn of such agents through word of mouth.

“Choosing a real estate agent is one of the biggest steps because buying a home, for most people, is the single biggest financial transaction [in which they are involved] in their lifetime, and they want to have a lot of confidence in that agent,” Molony says. “It’s really important that you have a good rapport with that person.”

Ask your friends and family for referrals before heading to the Web to search for real estate professionals. Then, meet those professionals in person before making your final decision.

By understanding your finances, doing thorough research on the real estate market, and surrounding yourself with a great team, you can avoid these common mistakes when you’re buying a home.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/real-estate/first-time-homebuyers-the-four-mistakes-you-need-to-avoid/feed/8Understanding Obamacare: Health Insurance Exchangeshttp://blog.equifax.com/insurance/understanding-obamacare-health-insurance-exchanges/
http://blog.equifax.com/insurance/understanding-obamacare-health-insurance-exchanges/#commentsTue, 28 May 2013 11:29:23 +0000http://blog.equifax.com/?p=5742Nearly four years after Congress passed the federal Patient Protection and Affordable Care Act, one of its most prominent features will begin in October—the Health Insurance Marketplace.

According to a recent survey done for InsuranceQuotes.com by Princeton Survey Research Associates International, only 10 percent of Americans claim to be very knowledgeable about the Affordable Care Act, commonly known as Obamacare.

“People in general are not very well informed about the [Affordable Care Act], and I think the primary reason is the most significant parts of the law haven’t gone into effect,” said Alan Weil, executive director of the National Academy for State Health Policy.

Many of the survey respondents weren’t aware of when changes would go into effect, and they also didn’t know when they’d need to sign up for health insurance exchanges.

These exchanges are government-run marketplaces—primarily online—where people can compare and purchase an insurance policy, with a set of in-person options to help customers navigate the marketplace.

“There’s certainly an understanding that you can’t make this work if all you do is sort of send people to a website,” Weil said.

Exchanges will be run by individual states, by the federal government when states have chosen that option, or by a partnership between a state and the federal government.

However the exchange is run, the options and benefits available in the exchanges will be virtually the same, Weil explained. “Their functions are identical. They’ll find out if you’re eligible for a subsidy, give you options of plans, and get you enrolled.”

In general, plans offered through the exchanges will look much like private insurance plans do now, although they’ll be more structured and there will be some improvements in the nature of coverage.

According to Weil, insurers in the exchanges are required to offer “essential health benefits,” which are the types of services that have traditionally been covered by typical employer-sponsored health plans.

The health insurance plans offered will vary from state to state, but all plans will be required to offer certain federally-mandated options, like coverage for preventative services, maternity services, and pharmaceutical services.

Depending on income and family size, people may qualify for free or significantly discounted insurance plans through an exchange. According to healthcare.gov, a website set up by the federal government to explain recent and ongoing changes in health care laws, a new kind of tax credit will also become available.

People will not be required to purchase insurance through the exchanges—insurance through the private market will still be available.

“Very, very few people who have insurance through a job will want to switch over. I wouldn’t even encourage those people to give it much thought in the first year,” advised Weil. “It’s very unlikely someone with employer-covered health insurance would find themselves better off in the exchange—unless they’re getting very skimpy coverage through work.”

Those with comprehensive coverage through an employer aren’t eligible for most subsidies in the exchange. In fact, the primary targets of the exchanges are uninsured people or people—often those who are self-employed—that are currently buying insurance on their own.

Information on insurance plans that will be available through the Health Insurance Marketplace can be accessed now at healthcare.gov.

Enrollment in the new health exchanges will begin Oct. 1, 2013, and coverage through the exchanges will begin Jan. 1, 2014.

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.

]]>http://blog.equifax.com/insurance/understanding-obamacare-health-insurance-exchanges/feed/0Small Business Success: Follow Your Passionhttp://blog.equifax.com/small-business/small-business-success-follow-your-passion/
http://blog.equifax.com/small-business/small-business-success-follow-your-passion/#commentsMon, 13 May 2013 12:19:43 +0000http://blog.equifax.com/?p=5494Starting a small business can be intimidating, but plenty of people have done it before—and done it successfully. Whether it’s opening your own coffee shop, starting a consultancy firm, or becoming a wedding planner, there are plenty of opportunities for success.

Take real estate investor Theresa Bradley-Banta (pictured right), who has created two businesses, one drastically different than the other. She started out 23 years ago with her own graphic design firm, but now she spends her days flipping not just houses but also multi-million dollar apartment buildings with her business, the Theresa Bradley-Banta Real Estate Consultancy.

Initially a freelancer designer, Bradley-Banta started investing in real estate when she and her husband moved out of their home. Instead of selling the house, she rented out her old home to a group of college girls and loved the experience. This inspired her next business endeavor, with which she expanded her business knowledge and learned tools for success.

Tip 1: Follow your passion.

Bradley-Banta’s first experience as a landlord led to more real estate acquisitions and eventually to flipping properties, which she found she enjoyed more than day-to-day property management. But it would take a hefty stash of 20 houses to afford a property manager that could take some of the work off her hands, so she switched to multi-family buildings.

“I bought a 29-unit building, completely renovated that property, and ultimately flipped it,” she said. In doing so, she found she was more passtionate about renovating properties than graphic design. “I really enjoyed that whole process of taking up an old, rundown building that was poorly managed and making it beautiful and a really nice place for residents to live.”

Tip 2: Have a clear vision to get where you want to go.

When she began considering larger buildings, she knew she would need the right team of people behind her and a plan to get there.

“I had a purpose behind it. I wanted to really impact lives,” she said. “It wasn’t a big pile of money at the end. The most important thing I did was I started driving around and looking at apartment buildings in town and picturing myself owning them. I thought about the lives I could impact by being a great landlord. I dreamed about the buildings I could change and the team I could have in place. I really had the end in mind.”

Identify first why you want to start your own business—whether it’s to make enough money to live, to share a passion with the world, or to help people. A profit is usually the goal of any business, but identifying other, more personal goals will help guide your plans.

Tip 3: You don’t have to know everything to get started; you just need to know enough.

Don’t let your lack of expertise scare you from starting a business. As your business grows, you will learn from the experiences and people you encounter along the way.
“Just get started—you’ll learn as you go,” Bradley-Banta said. “Just make sure you’re not leaping off a cliff.”

Tip 4: Surround yourself with positive, engaging people.

The best way to gain the knowledge and support you need is to surround yourself with people who can help you—whether that’s good lawyers or good friends.

“I think it’s really important to hang out with the right people,” she said. “It’s not easy, but if you’re spending time with people who are negative, doing the same stuff day in and day out, and constantly coming up excuses about why they won’t change, you’re not hanging out with the right people. It’s just really that who you associate with plays a huge part in your success, so be aware of it.”

Michelle Stoffel Huffman is a researcher and staff writer for Think Glink Inc. Prior to joining Think Glink, Michelle worked for the Chicago Tribune as a daily news reporter and community manager, covering local government, business, tax issues and crime. She now specializes in real estate industry news, consumer financial reporting and home design and decor. She is a graduate of DePaul University in Chicago.